Higher taxes disincentivises wealth and job creation
By taking more of the wealthy's income, they are less likely to want to continue in further income or job creation.
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The Argument
The vast majority of wealth and job creation is created through the ingenuity of a minority of individuals who often recycle their wealth by re-investing it into the wider economy. A higher tax on the wealthiest in society disincentivises this behaviour and is often seen as punishing success.
It is no surprise that some of the most productive economies in the world with the highest levels of job creation also have lower levels of personal and corporate taxation.
Counter arguments
The current tax system in most Western capitalist societies creates economic polarisation dividing society between those with economic means and those without. A system that taxes the poor and rich at a similar rate leaves those on lower income with less money available to meet the growing price of essential goods, including housing, transport, and food.
Higher rates of tax on the wealthy as opposed to the poor serves as a check on this and preserves the critical middle classes, ensuring that there is room for social mobility.
Premises
[P1] Higher tax rates de-incentivises the wealthy from reinvesting in the economy.
Rejecting the premises
[Rejecting P1] The wealthy do not help the economy by reinvesting. The only way they can significantly help is by paying more towards public services.